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Halving Bitcoin Fees Is Near, And BTC Miners Are Preparing

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Halving Bitcoin Fees Is Near, And BTC Miners Are Preparing

(CTN News) – A Nasdaq-listed Bitcoin mining company announced yesterday that it had signed agreements to purchase three Bitcoin mining facilities in Mississippi for $19.8 million in cash.

With the acquisition, CleanSpark expects to increase its mining capacity by 2.4 exahashes per second (EH/s) once fully integrated.

Exahashes (abbreviated EH/s) are a measure of the processing power of Bitcoin mining machines. Exahashes are equal to one quintillion (1,000,000,000,000,000,000) hash calculations per second. It is the responsibility of mining machines to solve complex mathematical problems. In general, the more exahashes a machine has, the more problems it will attempt to solve, which will increase its chances of mining Bitcoin.

It is an important event since the next halving is expected to occur in April, which will reduce the rewards paid to miners for validating transactions from 6.25 bitcoins to 3.125 bitcoins.

The halving occurs roughly every four years, during which the reward miners receive for processing transactions is halved. Each time a new transaction is added to the blockchain, miners are rewarded with 6.25 bitcoins.

As a result of the halving, fewer new Bitcoins entered the market,

Thereby reducing inflation. Miners become increasingly incentivized to secure a network as mining rewards decrease over time. The limited supply and predictable schedule of halvings are key characteristics of its economic model.

Additionally, CleanSpark has entered into agreements to acquire a mining facility under construction in Dalton, Georgia, which is projected to generate 0.8 EH/s with further investments of approximately $6.9 million.

The Mississippi and Georgia purchases, when fully operational, will more than double CleanSpark’s current mining capacity from 10 EH/s to over 20 EH/s by early 2024.

CleanSpark, headquartered in Utah, said its expansion into Mississippi will add diversity as well as increasing efficiencies by clustering more mining in its existing Dalton area.

According to CleanSpark’s CEO Zach Bradford, the acquisitions will allow the company to maintain “best-in-class overhead costs” at scale in the future.

In January, CleanSpark announced that it had secured an agreement to purchase up to 160,000 next-generation bitcoin miners, which will enable it to achieve over 50 EH/s in the future. In order to fund the latest purchases, CleanSpark intends to use cash on hand.

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